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Global Race For Strategic Minerals Puts Poços de Caldas On The Radar; Region Could House 300 Million Tonnes Of Rare Earths
The race for clean energy and cutting-edge technology has put strategic minerals at the center of global attention. Among them, rare earths are gaining prominence for their importance in the production of electric car motors, wind turbines, and high-tech equipment.
In Brazil, the city of Poços de Caldas (MG) has made its way onto this global map with a promising discovery within an extinct volcano crater. According to data from G1, the extinct volcano crater could supply about 20% of the global demand for these minerals.
Brazilian and foreign companies have intensified requests for authorization to research these minerals.
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According to the National Mining Agency (ANM), Brazil has already granted 1,882 soil research authorizations aimed at rare earths.
In Minas Gerais, there are 361 requests, with one third of them concentrated in Poços de Caldas.
The Crater That Could Change Everything
Covering approximately 800 km², the Poços de Caldas crater encompasses the municipalities of Poços de Caldas, Andradas, and Caldas, as well as Águas da Prata (SP).
The region could contain up to 300 million tonnes of rare earths, according to geologist Álvaro Fochi, responsible for the discovery of the deposit in the 2010s.
This type of mineral is not common or easy to extract. Nevertheless, the area has attracted the attention of Australian mining companies, who are already planning to begin exploration between 2026 and 2027.
These companies are expected to explore a total of 420 km². In just 15% of this territory, 2 billion tonnes of clay with rare earth ions have been identified—enough to sustain 20 years of mining.
Ease Of Extraction Gives Brazil An Edge
One of the major attractions of the Poços de Caldas deposit is the way the mineral is presented. Rare earths are concentrated in ionic clays just 30 meters deep. This allows for simpler, cheaper, and less environmentally damaging extraction.
The method used is called “backfill.” In this process, a new pit is opened while another, already mined, is filled with previously extracted material. This continuous process allows for immediate environmental rehabilitation and reduces soil damage.
According to mining companies, this model is five times cheaper than deep mining, which requires explosives and large machinery.
Therefore, experts are already pointing to Poços de Caldas as one of the few deposits outside China with potential to compete in volume and cost.
Strategic Bet For Brazil
The Brazilian government is also aware of the importance of strategic minerals. Data from the Ministry of Mines and Energy shows that the country has the second-largest rare earth reserves in the world, with 21 million tonnes—which represents 23% of the global total.
Projects for the extraction of rare earths have already been mapped in other states, such as Goiás, Bahia, Amazonas, Rio de Janeiro, São Paulo, and Roraima. And the government wants to take advantage of this potential.
In June, the Brazilian Funding Agency for Studies and Projects (Finep) and BNDES approved 56 business plans in a public call.
The total investment was R$ 45.8 billion. Of these, 10 projects are dedicated to rare earths. The others include lithium, graphite, copper, silicon, nickel, titanium, and platinum group minerals.
Intense Global Competition
The race for these minerals is global. Countries like China and the United States are vying for dominance in the sector. The U.S. lost leadership in the exploration of rare earths to the Chinese in the 1990s.
Since then, China has dominated the sector, producing over 90% of the permanent magnets made with rare earths.
For this reason, the United States has been seeking agreements with producing countries. At the end of July, the president of the Brazilian Mining Institute (Ibram), Raul Jungmann, stated that Gabriel Escobar, chargé d’affaires at the U.S. embassy, expressed official interest from the U.S. government in Brazilian strategic minerals.
This movement is part of the foreign policy adopted by Donald Trump, which pressures allies to ensure the supply of critical inputs to the U.S. Even with trade tensions, American interest could open doors for new bilateral agreements.
Steps And Future Expectations
Before extraction begins, companies need to follow a timeline. According to geologist Paulo Henrique Silva Lopes, applicants have up to three years to complete studies and submit a technical report. Only after this document can the mining request be made.
There are still many areas with unexplored potential. Even without clear geological signs, companies make research requests based on the region’s history.
“There are many undiscovered occurrences. Even if there is no clear geology, requests are made in the hope of finding something because the region is ‘on top of the vein’,” Lopes explains.
With the current scenario, Poços de Caldas stands out as a key piece in Brazil’s strategy to carve out a significant place in the global rare earth market. And, more importantly, with an advantage that few countries have: abundance, easy access, and competitive cost.
With information from G1.
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